With a second round of Paycheck Protection Program loans officially on its way – this renewed PPP2 program is part of a $900 billion pandemic relief provision signed into law by President Trump on Dec. 27 – businesses and organizations are eager to know if, when, and how this assistance could help their operations.
The U.S. Small Business Administration (SBA) announced that it plans to begin a tiered opening for round 2 of the Paycheck Protection Program (PPP) the week of Jan. 11.
Paycheck Protection Program First Draw Borrower Application Form (revised 01-08-21)
Paycheck Protection Program Second Draw Borrower Application Form (01-08-21)
Starting Monday, Jan. 11, only certain types of community financial institutions will be able to make first-draw PPP loans, and on Wednesday, they will be allowed to make second-draw PPP loans. The full PPP will then open up to all participating lenders “shortly thereafter” according to a statement from SBA. This delay is the result of language in the Economic Aid Act which set aside funds for the smallest and hardest-hit small businesses. SBA, in another guidance document that was just released, outlines the steps it is taking to effectively implement the legislation by, among other items: “Accept PPP loan applications only from community financial institutions for at least the first two days when the PPP loan portal re-opens.” The exact date for a full opening of the PPP has not yet been published.
Two final interim rules were published late Wednesday evening, Jan. 6, 2021, outlining the process for applying under the 2nd round of the PPP.
Interim Final Rule on Paycheck Protection Program as Amended by Economic Aid Act (1/6/2021)
Interim Final Rule on Second Draw Loans (1/6/2021)
Guidance on Accessing Capital for Minority, Underserved, Veteran and Women-Owned Business Concerns (1/6/2021)
Additional Resources
The Community Bankers of Michigan has created this helpful resource on the Paycheck Protection Program Round 2.